DSA calls for excise remission scheme

Distilled Spirits Aotearoa is warning that the latest alcohol excise increase will push more small distillers closer to breaking point and wants an excise remission scheme for small producers.

From 1 July 2026, alcohol excise rises 3.07%, taking the rate on spirits to more than $71 per litre of alcohol.

Distilled Spirits Aotearoa (DSA) says excise is now the single largest cost in a bottle of New Zealand spirits, often exceeding ingredients, packaging, freight and labour combined.

“For most of our members, excise accounts for more than 30% of bottle revenue,” says Sarah Bonoma, Chair of Distilled Spirits Aotearoa. “It is paid when the product leaves the distillery, regardless of when, or whether, that product is sold by the retailer. That's a cash flow burden very few small businesses in any other sector would be expected to carry.”

DSA says that New Zealand distillers are at a structural disadvantage when compared with their nearest competitor, Australia. There, eligible distillers can access an excise remission of up to AUD$400,000 each year, which is roughly enough to offset excise on the first 13,000 bottles a small producer sells.

DSA says the scheme has helped fuel a thriving Australian craft spirits sector with Australian exports growing 68% since 2012 whilst NZ exports have fallen by a third over the same period. No equivalent support exists in New Zealand.

Distilled Spirits Aotearoa is calling on the Government to introduce an excise remission scheme for small producers, modelled on the Australian framework and capped to ensure it supports genuinely small and regional businesses.

“New Zealand distillers aren't asking for subsidies. We're asking for a level playing field with our nearest neighbour, and excise settings that recognise the difference between a small regional producer and a multinational,” says Bonoma.

 “We have a real opportunity to build a high-value spirits industry that supports regional jobs, tourism, innovation and exports. But the current settings make it harder every year for the small producers driving that growth to invest, employ and compete.”